Dell making money to buy EMC!

Dell, Inc. announced on Monday that it is selling its Dell IT Services to NTT Data Inc. for $3 billion as a part of its ongoing plan to raise funds to purchase EMC. In October last year, Dell announced that it is going to acquire EMC and all its business subsidiaries for $67 billion. To raise money for the deal, Dell will slowly get rid of its non profitable assets in order to pay for the EMC deal.

Getting deep into the history, Dell had purchased the business for $3.9 billion in 2009 when it was Perot systems, founded by billionaire and onetime presidential candidate Ross Perot. Perot bought TAG, a Lincoln based administrative services provider in 2005, for $65 million. After it bought TAG, the company chose to build a new campus at the Nebraska Technology Park in Northwest Lincoln and consolidated all its employees there.

Now Dell wants to sell off the clubbed version of Perot and TAG in order to raise funds to but data storage provider EMC for $67 billion. The company wants to reinvent itself as more than just a personal computer company.

Japan-based NTT Data focuses on information technology in the medical field, including medical records and billing.

Both companies emphasized in statements that the deal is not considered a consolidation and that no layoffs or office closures are expected. They did not say when the deal is expected to close.


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